CommBank latest to join stampede on fixed rate home loan cuts

Tom Watson

09 Apr 2019

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The Commonwealth Bank has become the latest lender to jump on the rate cut bandwagon by announcing a number of cuts to it fixed home loan rates this morning which will come into effect immediately.

CommBank made cuts of between 10 and 30 basis points to a variety of its packaged and unpackaged fixed rate loans for both owner occupiers and investors making principal and interest repayments.

Some of the major changes included:

Fixed Rate (Wealth Package) owner occupier fixed rate cuts

• 3 year fixed rate: Reduced from 3.89% to 3.79% (4.98% comparison rate*)

4 year fixed rate: Reduced from 4.19% to 4.09% (5.00% comparison rate*)

• 5 year fixed rate: Reduced from 4.39% to 4.09% (4.94% comparison rate*)

Fixed Rate (Wealth Package) investor fixed rate cuts

• 2 year fixed rate: Reduced from 3.99% to 3.89% (5.54% comparison rate*)

• 3 year fixed rate: Reduced from 4.09% to 3.99% (5.44% comparison rate*)

• 5 year fixed rate: Reduced from 4.49% to 4.39% (5.39% comparison rate*)

The cuts may be welcome news to mortgage holders looking to fix their loans, as the largest 30 basis point reduction on the Fixed Rate (Wealth Package) 5 fixed term for owner occupiers making principal and interest repayments (based on a $400,000 loan) would save customers $4,260 over the five years.

CommBank wasn’t the only lender to announce a rate reduction though, with Bendigo Bank stating that it will cut variable rates on its Express Home Loan (by 10 basis points) and Basic Home Loan (20 basis points) from April 12, 2019.

The changes mean that the Bendigo Express Home Loan variable rate will sit at 3.79% (4.09% comparison rate*) while the Basic Home Loan rate will also be 3.79% (4.07% comparison rate*).

Recent fixed rate home loan cuts

According to the Mozo database, the Commonwealth Bank is just the latest lender to reduce its fixed rate offers, with 23 other providers having made cuts to at least one fixed rate home loan since the start of March.

Some of the notable recent fixed rate changes include:

Adelaide Bank: Made cuts ranging from 5 to 41 basis to its fixed rate products.

AMP: Cut between 13 and 87 basis points from select owner occupier and investor fixed rate loans.

CommBank: Slashed fixed rates for owner occupiers and investors between 10 and 30 basis points.

loans.com.au: Introduced a new 3 year fixed rate deal of 3.59% (3.89% comparison rate*) for owner occupiers.

NAB: Reduced a range of fixed rate home loans for both owner occupiers and borrowers with cuts from 5 to 34 basis points.

Suncorp: Made changes to 5 year fixed rate terms for both owner occupiers and investors ranging from 20 to 70 basis points.  

Interested in comparing fixed rate home loans for yourself? Check out some of the great offers below, or head over to the Mozo fixed rate home loan comparison hub for even more deals.

Fixed home loan offers 2019

Rates updated daily. Advertiser disclosure.

  • loans.com.au

    2.29% p.a.
    fixed 2 years

    2.81% p.a.

    $1234

    Product details Close details
    Special Offer Fixed Rate Home Loan

    This 3 Year Fixed Rate Special Offer for purchase or refinance. Rate lock option available. No monthly or ongoing fees.

    • 2.29% p.a.
      fixed 2 years

    • 2.81% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free up to $10,000 p.a.

    • no

    • no

    • $520

    • 80.00%

    • $50,000

    • $1,000,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Special Offer Fixed Rate Home Loan

  • HSBC

    2.09% p.a.
    fixed 2 years

    2.98% p.a.

    $1234

    Product details Close details
    Fixed Rate Home Loan

    Have the security of a fixed rate for 2 years with the option to split with one of the HSBC variable Home Loans. No ongoing monthly service fees or annual fees. Mozo Experts Choice Fixed Home Loan 2020^

    • 2.09% p.a.
      fixed 2 years

    • 2.98% p.a.

    • $0

    • $0.00

    • $300.00

    • yes - free up to $10,000 p.a.

    • no

    • no

    • $0

    • 80.00%

    • $50,000

    • $7,500,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Fixed Rate Home Loan

  • Homestar

    1.98% p.a.
    fixed 1 year

    2.41% p.a.

    $1234

    Product details Close details
    Star Classic Fixed Home Loan

    Enjoy a new and unbelievably low introductory rate home loan for one year. Unlimited free online redraws and additional repayments up to $20K to help you pay off your home sooner. Multiple loan splits possible and flexible replacements. (Rates revert after introductory period ends).

    • 1.98% p.a.
      fixed 1 year

    • 2.41% p.a.

    • $495

    • $0.00

    • $535.00

    • yes - free up to $20,000 p.a.

    • yes - free

    • no

    • $495

    • 80.00%

    • $150,000

    • $850,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Star Classic Fixed Home Loan

  • UBank

    2.14% p.a.
    fixed 1 year

    2.48% p.a.

    $1234

    Product details Close details
    UHomeLoan

    Fast, easy apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans. Winner of a Mozo Experts Choice Award 2019 in the Fixed Rate Home Loan category.^

    • 2.14% p.a.
      fixed 1 year

    • 2.48% p.a.

    • $395

    • $0.00

    • $0.00

    • yes - free up to $20,000 p.a.

    • no

    • no

    • $395

    • 80.00%

    • $100,000

    • $2,000,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • $395 Establishment fee waived for fixed rate loans that settle by 31 March 2020.

    Read our Mozo Review to learn more about the UHomeLoan

^See information about the Mozo Experts Choice Home loans Awards